RE: Wi-LAN Agrees to Sell TIL-TEK Antenna DivisioFair enough, Company share price was high in 2000 because of the bubble, but it shouldn’t be the reason for management to spend freely - pay for something many times more what it’s worth.
The thing is that no point in time Til -Teck was worth $25 million. It probably was worth about the same for what they are selling today and no matter how much inflated WIN share price was in 2000 they shouldn’t give away so many shares for it.
They most certainly knew, that Company shares price was greatly inflated and should use it to our advantage - just one PP of few million shares at the level of 30 -40 bucks could go long way and help immensely. Unfortunately they were very shortsighted and didn’t load on cash as they should and now we pay for it.
As for the claim that “Wi-Lan bought Til-Tek for 580,000 shares back in June 2000.
This translates into Wi-Lan current value @ 3.44 per share.
How? $2M/580,000 = 3.44 per share.”
Well, it’s not exactly that way.
I’ll rather say, that they payed 580,000 shares for Til-Teck in June 2000 and now this number of Company shares is worth $2M or $3.44/share which is good - considering the fact, that Wi-lan share stands at 70 cents now.
What they got for Til -Teck it not translates into Wi-Lan current value @ 3.44 per share - Company as a whole.
If it was, then with Wi- Lan shares number of 42,231,771 @ $3.44 this Company would be worth $145.2 million - $2 million (Til- Teck) = $143.2 million.
I wouldn’t say that the rest of Wi-Lan is worth that much - especially today.
But it’s hard to say what the real value of IP assets is. However, future will show clearly.
Regards, TA